Melbourne will Overtakes Sydney in 2016
The smaller housing boom in Melbourne has led to the capital city preserving its values better than Sydney, which is headed for a definite cooling.
While preliminary auction rates for Melbourne fell to 64.7 per cent, there were more properties cleared in Melbourne than Sydney, according to Corelogic RP Data.
Listings in Melbourne showed its tenacity by holding similar numbers to the week before, while Sydney's listings fell.
Sydney's preliminary rate was 59.3 per cent, the third week in a row the city has recorded below 60 per cent and the lowest since February 2013.
"The boom has not been as prevalent in Melbourne, that's why the market is holding," property analyst SQM Research's Louis Christopher said.
"We strongly believe Melbourne will outperform in 2016 … while the slowdown in Sydney is definitely accelerating."
Mr Christopher who correctly predicted the size of the recent boom had predicted the Melbourne market will continue to rise to double digit growth in 2016 but Sydney will maintain in a 4 to 9 per cent range.
"We are going to see more of the 4 per cent than a 9 per cent," he said.